UK households squeeze budgets as bills rise but disposable income ticks up

Households across the UK are facing rising costs for essentials, but disposable income has seen a slight improvement. While bills for insurance, car leasing, and water have climbed, some savings have come from childcare and credit card repayments. The picture varies sharply between cities, with residents in Brighton struggling the most and those in Belfast faring better. The average UK household now spends nearly two-thirds of its income on bills and essentials. Despite this, disposable income has edged up slightly in recent months. However, the gap between cities remains wide.

Brighton residents have the least left after expenses, with just £516 remaining each month. Edinburgh follows closely, with only £632 to spare. In contrast, Belfast tops the list for disposable income, with an average of £954.66 per person. Londoners also retain a relatively high amount, at £943.89. Other cities with stronger financial flexibility include Glasgow, Cardiff, and Nottingham. Meanwhile, energy prices are set to rise further due to ongoing tensions in the Middle East, adding to the pressure on household budgets. The data also reveals differences in spending patterns. In Belfast, residents spend around 60% of their income on bills, while in Brighton, that figure jumps to 75%.

The latest figures show a mixed financial landscape for UK households. While disposable income has inched upward, rising energy costs and regional disparities continue to shape spending power. Cities like Belfast and London retain more after essentials, whereas Brighton and Edinburgh face tighter budgets.